By: Sujeet Kushwaha
Banks are required to report cash deposits over $10k to the IRS to prevent money laundering - it doesn't mean you're in trouble necessarily.
The IRS may follow up and request supporting documentation on where the cash came from - have records ready to show legal income sources.
To avoid paperwork, consider splitting up large deposits over multiple days/weeks or using multiple bank accounts.
If asked, be honest with the IRS about the deposit - lying can trigger audits, penalties, even criminal charges.
If the deposit is from legitimate sources like inheritance, home sale, or business income, you likely have nothing to worry about.
Get receipts when depositing over $10k cash - having documentation helps verify where the money came from.
Before depositing, notify your bank manager to ensure smooth processing and answering any questions.
If engaged in illegal activities, depositing over $10k cash will definitely trigger IRS scrutiny - not worth the risk!
For very large sums, consider speaking to a tax/legal professional to understand reporting requirements and ramifications.
Stay calm if contacted by the IRS - simply provide truthful explanations and documentation on legally earned income.